In 2017, Grant purchased land for $107,550 for use in his business. He sold it in 2020 for $121,150. What is the amount and type of gain on this sale, before netting any other gains and/or losses?
In 2017, Grant purchased land for $107,550 for use in his business. He sold it in 2020 for $121,150. What is the amount and type of gain on this sale, before netting any other gains and/or losses?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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This is my second attempt on this problem please help!!
Transcribed Image Text:In 2017, Grant purchased land for $107,550 for use in his business. He sold it in 2020 for $121,150. What is the amount and type of
gain on this sale, before netting any other gains and/or losses?
Multiple Choice
$13,600 ordinary gain.
$13,600 long-term capital gain.
$13,600 short-term capital gain.
$13,600 S 1231 gain.
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